To make the best investment decisions, you need to understand your portfolio clearly. To aid in this task, you might consider using portfolio analysis tools.
These valuable investment tracking, analysis and reporting tools can help you track your performance, assess risk, and optimize your investments across a diverse asset allocation.
Best Portfolio Analysis Tools & Portfolio Analyzers—Top Picks
$99/mo., or $948/yr. if billed annually (15% off)
Ranges from free to $21/month (billed annually)
Best Portfolio Analysis Tools
The best portfolio analysis tool for you isn’t necessarily the perfect tool for someone else. Your best choice is likely one of the following:
- Best free portfolio analyzer and tracker: Empower
- Best portfolio analysis tool for high-net-worth-individuals: Vyzer
- Best investment portfolio tracker app [including dividends]: Sharesight
- Best for investment portfolio management & analysis: Stock Rover
- Best portfolio visualizer for asset allocation and sector weightings: Morningstar Portfolio Manager
- Best portfolio management software housed locally: StockMarketEye
- Best for comprehensive net worth tracking: Kubera
- Best portfolio analyzer software for money management capabilities: Quicken Premier
- Best for low-cost portfolio analysis and management: SigFig
- Best for personal finance management: Mint
Below, we cover the best portfolio analyzers and analysis tools in detail.
Best Portfolio Analyzers and Analysis Tools
1. Empower [Best Free Portfolio Analyzer and Tracker]
- Available via web and mobile app (iOS, Android)
- Sign up here
Empower (Personal Capital is now Empower) has 3.3 million users, some of whom use free tools such as the Personal Dashboard, and some of whom use the Wealth Management service.
Empower’s Free Tools
The free Personal Dashboard makes it easy for people to add all their financial accounts in one place, including credit cards, savings, checking, loans, and tax-advantaged investment accounts.
Empower also provides a free Investment Checkup tool to assess your portfolio risk, analyze past performance, and get a target allocation for your portfolio. The tool will help you identify overweight and underweight sector investments (perhaps you have too much allocated to utilities, and not enough to healthcare, for example) and assess your diversification.
You can even compare your portfolio to both the S&P 500 and Empower’s “Smart Weighting” Recommendation, which suggests that investors more equally weight their portfolios across size, style, and sector—unlike the S&P 500, where the biggest stocks have the most effect on the portfolio, and there are huge differences in how much each sector is weighted.
The Empower Fee Analyzer helps you examine the fees you pay in your accounts, whether that’s advisory fees, sales charges, expenses, and other costs.
Other investing and personal finance tools include a Savings Planner, Retirement Planner, Financial Calculators, and more.
These services, of course, are also available with Empower’s full-service Wealth Management account—along with a number of other perks.
Empower’s Wealth Management Services
The Wealth Management plan better suits investors who want a fuller advisory experience. The service pairs automated tools with human management.
After you enter your risk tolerance, goals, time frame, and personal preferences, Empower creates a recommended portfolio. The portfolios are diversified across multiple asset classes and rebalanced when necessary. The six asset classes include:
- U.S. stocks
- International stocks
- U.S. bonds
- International bonds
- Alternative investments
Customers have the option to incorporate socially responsible investing (SRI) into their investments, too. In short, that means you can choose to invest only in companies that have positive environmental and social impacts.
Investors enjoy access to financial advisors who can help them make various financial decisions, from retirement planning to college savings to stock options and more. Empower’s financial advisors are available 24/7 by phone, live chat, email, or web conference.
Note that the Wealth Management plan has a minimum initial investment of $100,000. Investors with between $100,000 and $200,000 have access to a team of financial advisors. Those with more than $200,000 have access to two dedicated financial advisors. There are extra benefits for people who invest over $1 million, including lower fees.
Wealth Management Annual Fee Tiers
- $100,000-$1,000,000: 0.89%
- $1,000,001-$3,000,000: 0.79%
- $3,000,001-$5,000,000: 0.69%
- $5,000,001-$10,000,000: 0.59%
- $10,000,001-plus: 0.49%
Regardless of how much money you bring to the table, if you sign up, you will be given the option to schedule an initial 30-minute financial consultation with an Empower advisor.
Empower | Free Net Worth and Investment Tracking
Free (no monthly fees for tools); Starts at 0.89% AUM for wealth management services
- Empower (formerly Personal Capital) is a free app that makes it easy to track your net worth.
- You can link it to your bank and investing accounts, credit cards and more to see a single view of useful information and data, including your net worth.
- Free net worth, cash flow and investment reporting tools
- Dedicated investment advisor
- Tax optimization retirement account withdrawal strategies
- High minimum for investment management ($100k)
- High investment management fee (0.89% AUM)
Related: 18 Best Stock Market Investing Research & Analysis Sites
2. Vyzer (Best Investment Portfolio Analysis App for High-Net-Worth Individuals)
- Available via Desktop (Windows, macOS), mobile (Android, iOS) app
- Sign up here
Vyzer represents the best investment portfolio analysis app for high-net-worth individuals found on this list. It offers investment portfolio tracking, financial planning tools, and wealth management solutions for both public and private investments.
The digital wealth management platform also distinguishes itself by serving as the only service that combines public and private investment performance tracking. Vyzer keeps tabs on all of your investments in one place, providing a comprehensive view of your entire portfolio so you can easily monitor its performance. It supports all of the following accounts and asset classes:
- Real estate (syndications, funds, rental properties)
- Private equity funds (venture capital, hedge funds, debt funds)
- Private companies (startups and small-to-mid-sized enterprises)
- Investment accounts (Brokerage accounts, pension plans, 401(k), IRA, Roth IRA)
- Bank accounts (18,000+ banks worldwide)
- Crypto (Binance, Coinbase, BTC + ETH addresses, and more)
- Precious metals
You can even track and analyze investments you co-hold with others, and organize your investments under different holding entities.
Vyzer is designed for investors with diverse portfolios and multiple sources of income. It allows users to forward or upload any financial documents (think spreadsheets, investment documents, Schedule K-1s, quarterly statements, and more) and have the platform translate them into new assets or liabilities or update existing ones. After you link your bank accounts to the platform, Vyzer analyzes your transaction data with artificial intelligence to identify which transactions link to which assets or liabilities you’ve added to your account. This feeds the system’s cash flow tools.
Once you load all of your assets and liabilities into the dashboard, you can produce a cash flow forecast based on scheduled distributions, capital calls, expenses, and more.
Curious about how your peers handle their investments? Vyzer members can anonymously view each other’s portfolios to understand the financial products and funds they’ve invested in.
Empower, found earlier on this list is the closest comparison to Vyzer. The platform is different from Empower in four main ways:
- Vyzer doesn’t offer active wealth management.
- Vyzer can track more asset classes than Personal Capital (Empower)
- Vyzer offers more flexibility in adding new data to your account, and requires less effort.
- Vyzer charges a flat monthly fee (or a discounted annual fee) that you pay from outside with your investments, say with a credit card. Personal Capital takes its fees from portfolio performance.
If you are a sophisticated investor with a complex portfolio to track and analyze, consider using Vyzer to follow everything in a single platform. You can open an account for free for 30 days to see if the service is right for you. There’s no commitment and you can cancel at any time.
Vyzer | Your Private Investments Concierge
$99/mo., or $948/yr. if billed annually (15% off)
- High-net-worth investors can keep track of public and private investments with Vyzer, which provides portfolio tracking, wealth management, and financial planning tools.
- Enjoy comprehensive, holistic insight into your investment portfolio.
- Platform includes robust cash flow planning tools to make the most of your cash.
- Find new opportunities by seeing what other high-net-worth investors within the Vyzer community are doing.
- Can track a portfolio of public and private investments
- Can generate easy-to-view data from uploaded documents and linked bank accounts
- Flat fee increasingly a value as portfolio size grows
- No active wealth management offerings
- Price hard to justify for those with small net worth and/or simple portfolios
Related: Personal Capital Alternatives to Empower Your Finances
3. Sharesight: Best Investment Portfolio Tracker App [Including Dividends]
- Available: Sign up here
- Platforms: Web*
Sharesight has an award-winning performance and tax reporting platform that empowers you to track stocks and exchange-traded funds (ETFs) from over 40 exchanges worldwide. It also allows investors to track more than 100 global currencies and follow unlisted, alternative investments such as fixed interest and investment properties.
All of this and more are available via Sharesight’s easy-to-use online portfolio tracker.
The service prides itself on being a spreadsheet replacement, allowing you to know the true performance of all listed holdings, across multiple asset classes, in a single place.
With powerful sorting features and the option to exclude closed positions, you can actively compare the performance of your holdings to numerous benchmarks of your own choosing. You also can see the impact of capital gains, dividends and currency fluctuations (if investing internationally) on your portfolio and against your benchmark.
These reasons alone qualify Sharesight to make this list, but where it truly excels is its dividend-tracking capabilities.
Income-generating assets are a powerful source of passive income for investors, so getting their amounts right is essential. You can do that via the website’s Taxable Income report, which allows you to see a running total of all your dividends, distributions, and interest payments over any time period. It can even break up distributions by local and foreign income. You can also use the platform to project expected dividend income based on announced dividend payments. And no more digging for dividend dates.
All you need to do is upload your holdings by either connecting to your broker or stock trading app, uploading a spreadsheet or manually entering your trading history or opening balance. Sharesight integrates with more than 170 online brokers worldwide and can readily add ones not yet available to the service with a simple request.
To get started, visit the Sharesight website and start a free trial to see how you like the service. The free trial allows you to track up to 10 holdings in one portfolio. From there, you’d need to consider one of their paid packages to track your full portfolio. They offer discounted annual plans by visiting their page through this link.
* Note: The Sharesight Reader mobile app retired Oct. 3, 2022 and was removed from app stores. Sharesight still is available on tablets and phones via mobile web.
Sharesight | All Your Investments in One Place, Not All Over the Place
Free Plan: Free. Starter: $10/mo.* Investor: $16/mo.* Expert: $21/mo.*
- Performance and tax reporting to track your shares and ETFs from over 40 exchanges worldwide
- Track 75 global currencies and unlisted investments in an easy-to-use portfolio tracker
- Over 300,000 users from over 100 countries with 3 million individual holdings tracked and 170+ brokers supported rate it as 4.6 / 5 stars on Trustpilot
- Tracks investments across multiple accounts
- Creates Dividend Income Report to forecast distributions
- Powerful tax reporting feature
- High customer ratings
- Limited support for crypto beyond major options
- Pricey solution for some investors
Related: 11 Best Stock Trading Apps for Beginners
4. Stock Rover [Best for Investment Portfolio Management & Analysis]
- Available via desktop, mobile and tablet
- Sign up here
Stock Rover aggregates and tracks billions of dollars in assets for its users.
With their brokerage integration, you can quickly and securely import your portfolios into Stock Rover. Alternatively, you have the option to enter your information or import a spreadsheet manually.
The positions in your brokerage account will stay in sync with the positions in your Stock Rover portfolio, adjusting every night and when you log into your account.
Stock Rover makes it simple to see how your portfolio is performing compared to the overall market. Check individual positions in your portfolio to see which are your top performers and which aren’t performing as well.
Depending on how actively you want to monitor your account, you can request daily, weekly, or monthly reports about your portfolio.
You can also create watchlists and be notified when any stocks you have a target buy or sell price set for reach those targets.
There is a long list of triggers you can choose to get alerted for, such as:
- unusual trading volume
- P/E levels being reached
- upcoming earnings announcements, and more.
But it isn’t enough just to monitor your portfolio. You want to analyze it to determine if there are any adjustments you should make to create the best portfolio possible.
Fortunately, Stock Rover has a variety of portfolio analysis tools.
Simply choose a period and get in-depth portfolio analytics, including:
- risk-adjusted return
- internal rate of return (IRR)
- Sharpe Ratio
- component performance, and more.
The Future Income tool projects your future portfolio dividend income.
The tool finds the monthly income from exchange-traded funds, mutual funds, and individual stocks you own in the selected portfolios. You can play with any combination of your investments in the calculation.
It defaults to showing only dividends from the current month, but you can include dividends from previous months as well.
While you may want to see how your portfolio currently performs, it can be even more helpful to see how your portfolio might perform in the future.
Stock Rover’s Future Portfolio Performance Simulation uses the Monte Carlo simulations to test several scenarios’ long-term expected portfolio growth.
For instance, you could see how your portfolio would perform if you took regular, planned withdrawals. It could also show you the chances of retiring comfortably without running out of money.
As I’ve previously mentioned, it’s essential to have a diversified investment portfolio. Stock Rover’s correlation analysis tool can help you see the statistical relationship between asset prices.
Knowing your portfolio correlation can help you diversify your portfolio. A highly correlated profile is riskier than a weakly correlated one.
So, if an asset class falls, it doesn’t mean your whole portfolio necessarily follows suit.
The amount of correlation you want depends on your risk tolerance. A good starting point is to find assets that have correlations with each other below 0.70.
While I’m a fan of the buy-and-hold method, portfolios need to be rebalanced eventually.
Stock Rover’s Portfolio Rebalancing tool will show you when your portfolio has drifted away from your ideal balance at the sector and individual position levels. It’ll suggest what trades you should make to get your portfolio back to your desired balance.
You can also use the Trade Planning tool to compare your current portfolio with how it would be with the suggested trades to see if it moves you closer or further from your goals.
Stock Rover | Tools for Investors
Essentials: $7.99/mo. or $54.99/yr. Premium: $17.99/mo. or $124.99/yr. Premium Plus: $27.99/mo. or $194.99/yr.
- A complete service for investors looking to use screeners, investment comparisons, real-time research reports, model portfolios, chart and more
- Use this top-rated investment analytics service to identify stocks worth buying and outperforming the market
- Hundreds of screening metrics
- Proprietary scoring systems
- Real-time executive summary research reports
- No mobile app
- No crypto or forex data
- US markets only
Related: 11 Best Stock Portfolio Tracking Apps [Stock Portfolio Trackers]
5. Morningstar Portfolio Manager Instant X-Ray [Best Portfolio Visualizer for Asset Allocation and Sector Weightings]
- Available via desktop
- Sign up here
Morningstar’s Instant X-Ray is one of the top portfolio analysis tools available. It’s just part of the analysis available with the Morningstar Portfolio Manager, which tracks your portfolio’s gains and losses, intraday movements, performance, and more.
Instant X-Ray helps you evaluate your asset allocation and sector weightings and review any factor analysis.
Your asset allocation aids your understanding of how your assets are diversified across various asset classes.
For example, it might show 80% U.S. stocks, 10% foreign stocks, 8% bonds, and 2% other (representing your alternative investments).
You can see a deeper global breakdown of your holdings to see the world regions most represented in your portfolio using Morningstar’s portfolio analyzer tools.
It also shows your concentrated positions when a stock or other security makes up a significant percentage of your portfolio across 12 sectors. You can look at the stock holdings within your mutual funds to fully understand your investments.
Another of Morningstar’s portfolio management tools within X-Ray is the comparison of fees and expenses.
You can compare your expense ratio to similarly weighted hypothetical investment portfolios. Management fees can take a cut from your earnings, so it’s essential to know if your costs are standard.
Instant X-Ray will show your stock statistics, such as P/E, ROA, P/B, and more. Morningstar’s Style Box shows your portfolio diversification.
You can see classifications on your stock types too. It may show high yield, speculative growth, or something in between that will help you know if your holdings are aligned with your desired investment style.
Free 7-day trial. $199/yr. with coupon code “YATI”*
- Morningstar Investor offers expert research and investing advice. The service prides itself on its objectivity, top picks and advisor-grade portfolio management tools.
- Special Offer: Use coupon code “YATI” to receive $50 off your first year of Morningstar Investor
Related: 18 Best Stock Research & Analysis Apps, Tools and Sites
6. StockMarketEye [Best Portfolio Management Software Housed Locally]
- Available via desktop, tablet, iOS and Android
- Price: $74.99/year (Free 30-day trial)
- Sign up here
Stock Market Eye investment account manager lets you manage all of your investment portfolios in one place, organize stock watchlists, and view stock price charts.
You can easily import your investment account information straight from brokerages, upload OFX, QIF, or CVS files, or manually enter your data.
Then, you’ll be able to see your overall gains or losses and can compare them to the market through the benchmark of your choice.
Just looking at your investments and not the market as a whole can be deceiving as it may show your investments are up 15%, but the market is up 20%.
You can look at your entire portfolio or review investments individually. Compare your investments against the values most important to you, such as market value, total return, CAGR, IRR, and TWERR.
You might also choose to group portfolios, categorize your investments, and run various reports. For example, you might run an asset allocation report to see if your portfolio is diversified enough.
Other reports you might run include:
- Summary report (overview of your portfolio performance and activity over a specific timeframe)
- Transactions report
- Gain/loss report
- Total return report
- Back-in-time report (what your portfolio looked like on a specific day in the past)
Using Stock Market Eye to organize your watchlists lets you efficiently track hundreds of securities, such as stocks, ETFs, mutual funds, and currencies from around the world.
Some of the exchanges provide real-time data. You can use built-in stock alerts never to miss important information.
While stock price history doesn’t always repeat itself, it can be beneficial to see historical stock price charts. Stock Market Eye lets you see end-of-day and one and 5-day intraday charts.
There are also six style charts, fourteen technical indicators, and built-in and/or separate window charts. You’ll have all the information you need on the chart, including buys, sells, splits, and dividends.
You can look at your portfolio’s historical value chart with comparison stock charting to see how it has grown. Then, you can add a comparison benchmark to understand your growth in the context of the entire stock market.
StockMarketEye | Portfolio Tracker
Free 30-day trial, then $74.99/yr.
- StockMarketEye is an easy-to-use investment management and stock tracker that helps you keep an eye on your holdings and the markets
- Track portfolios, keep watchlists, view charts with technical indicators, and enjoy free, flexible stock quotes
- Free trial: You can try StockMarketEye for 30 days before purchasing
Related: 7 Best Stock & Portfolio Trackers [Investment Tracking Software]
7. Kubera [Best for Comprehensive Net Worth Tracking]
- Available via desktop, Apple iOS and Android App on Google Play.
- Sign up here
Kubera is one of the most advanced portfolio trackers on the market. It boasts thousands of bank connections, more global currencies than any other service, and detailed information about all of your investments.
Kubera is the ideal product for young professionals, homeowners, real estate professionals, and even cryptocurrency investors, among others. It allows you to keep track of your comprehensive portfolio holdings and analyze data from markets around the world.
The service is ideal for customers with international holdings, too. The service boasts connectivity to more than 20,000 banks, brokerages, and other investment institutions around the world. You can track global stocks—Kubera supports major stock exchanges in the U.S., Canada, U.K., Europe, Asia, Australia, and New Zealand—bonds, mutual funds, foreign exchange, precious metals, cryptocurrencies, NFTs, and more. You can also track real estate, automobiles, even domain names.
The platform allows you to view your holdings’ values and even estimated resale values at any given time without having to search through complicated paperwork.
In short: This service offers the functions of several portfolio management apps all in one place.
Want to explore Kubera to see if it’s right for you? Start with a risk-free 14-day trial; after that, you can choose a monthly or annual plan.
Kubera | World’s Most Modern Portfolio Tracker
Try plans for 14 days for $1. Then, Kubera Personal: $150/yr. Kubera Family: $225/yr.
- Kubera tracks all your assets in one place—traditional & crypto.
- Can access financial information from 20,000+ global banks, brokerages, and financial institutions.
- Keeps all details in one place to build a complete view into your net worth as simple as a spreadsheet.
- Easy to use
- Connects to more than 20,000 financial institutions around the world
- Values a high assortment of assets
- No financial planning tools
- Above-average cost
- No mobile app
8. Quicken Premier [Best Portfolio Analyzer Software for Money Management Capabilities]
- Available via desktop, tablet, iOS and Android
- Sign up here
Over the last three decades, more than 17 million people have trusted Quicken for portfolio analysis and to help them grow their net worth.
Like some of its competitors, Quicken Premier tracks your entire portfolio in one place. You can connect to retirement accounts, banks, loans, investments, physical assets (home, vehicles, collectibles, etc.), and more.
There are many portfolio analysis tools, such as the buy/hold analyzer, target asset allocation, buy/sell analyzer, and performance view.
You also get access to benchmarks, buy/sell previews, investing activity reports, Morningstar Portfolio X-Ray, watchlists, and more.
One of the most valuable tools lets you apply “what-if” scenarios to your investment portfolio. For example, you can see how much more capital you would have in the long run if you paid down loans quicker, saving on interest.
Various calculator tools can help you run the numbers to plan for college funds, savings, and more.
The Lifetime Planner tool can make a comprehensive roadmap for reaching your retirement goals. You can play with how much money you would have if your income streams rose or fell, if you bought a new property, etc.
Quicken doesn’t just work as a portfolio visualizer, but it lets you manage your money from the account as well. You can pay bills directly from Quicken with no charges with the tool’s money management capabilities.
Come tax season, the software makes filing easy. It tracks your estimated capital gains and automatically creates reports that help you get the most tax benefits.
Quicken | Personal Finance and Money Management Software
Quicken Deluxe: $47.88/yr. Quicken Premier: $71.88/yr. Quicken Home & Business: $107.88/yr.
- Use Quicken to see your financial life in one place.
- Create a custom comprehensive budget, track your investments and plan for retirement.
- Stay on top of spending and track what’s left to pay bills that you can easily view and manage.
- Review your investment portfolio and monitor performance.
Related: 15 Best Budgeting Apps for Couples to Grow Together
SigFig’s Portfolio Tracker lets you sync outside brokerage and retirement accounts so you can keep track of your balances. It’ll look at your portfolio to see if it’s diverse geographically, in the types of investments, and more.
The service also checks how much you’re paying in fees. But Sigfig doesn’t just give you portfolio analysis tools so you can figure everything out on your own.
SigFig uses robo-advisors, so much of your investing and rebalancing can be done automatically with portfolio management software. If you’re an investor who doesn’t want to adjust your portfolio actively, but rather be more hands-off, this service is a good fit for you.
You can have a personalized portfolio ready for you in minutes. The investment management service will choose investments that match your risk tolerance, automatically reinvest your dividends, and rebalance your investments to keep your allocations the way you want them.
These services come as a free investment account manager for the first $10,000. Still, there is a 0.25% investment management fee for managing higher value accounts (a competitive rate).
SigFig will check for ways to lower how much you pay in taxes so you have more money to invest. It’ll calculate how much you have to invest to reach your goals in time, such as a house in 7 years or retirement at age 67.
They also give you free, unlimited access to financial advisors who provide you with consultations and help you create the best portfolio for your needs. This benefit isn’t common with automated portfolio management software services.
10. Mint [Best for Personal Finance Management]
To have portfolios to track, you need to set aside money to buy assets in the first place. Mint’s budgeting tools will help you reach your savings goals and have more money to invest. Over 30 million people use Mint for their personal finance needs.
Sync your bank or financial institution accounts, retirement accounts, and credit cards to track your cash flow and investments. The service will automatically categorize your expenses to see where your money goes.
Are you not saving enough money to invest? The Bill Negotiation tool, powered by Billshark, will negotiate on your behalf to lower your bills and save you money.
Mint will also monitor your credit score and give you access to the score around the clock, for free.
You’ll be alerted of any changes. You get alerts if there are suspicious transactions on your account, you’re going over budget, or you’re being charged an ATM fee on your debit card.
Financial calculators, such as the loan repayment calculator or the home affordability calculator, can help you determine what purchases are within your budget.
Additionally, Mint’s investment tracker lets you compare your portfolio to market benchmarks and look at your overall asset allocation across all your investment accounts.
It’ll help you notice unnecessary fees from investment advisors, so you keep as much of your capital as possible.
Mint is a free portfolio tracker and budgeting tool but contains some in-app ads.
Related Questions on the Best Portfolio Analysis Tools
Which tool is best for portfolio analysis?
The best tool for portfolio analysis depends on your needs and the metrics you want to use for analyzing your portfolio. It also depends on your investing skill level and how hands-on or hands-off you want.
Some of the top portfolio analysis tools are:
- Morningstar Portfolio Manager Instant X-Ray
- Stock Rover
- Stock Market Eye
- Quicken Premier
Each of these is explained in more detail in the sections above.
How do I analyze my portfolio?
There are a variety of metrics you can use to analyze your current portfolio, including (but not limited to):
- Asset allocation (by asset classes)
- Asset allocation (geographically)
- Asset allocation (by industry)
- Investment Performance compared to the overall market
- Asset Correlation
Unless you have a substantial amount of time and investing expertise, you’ll want to pick one or more portfolio analysis tools to help you out. The best tools for investment tracking and analyzing your portfolio are explained in previous sections.
Related: 18 Best High-Yield Investments [Safe Options Right Now]
What is the best way to track your portfolio?
It’s common for people to spread their financial portfolios across different brokerages, bank accounts, and elsewhere. It’s easiest to track all of your portfolio in one place. Several investment tools (listed above) can make it easy to view your portfolio all at once to get a broad, overarching view.
As you track your portfolio, it’s essential to compare your progress with the entire stock market to picture your investment performance better. Portfolio visualizer tools, investment management reports and investment tracking services can help make that comparison simple, as well.
Related: How to Get Rich Off Stocks [Steps to Invest in the Stock Market]
What is portfolio analysis?
For a business or individual, portfolio analysis is the process of assessing an entire portfolio to see how it is performing, how risky it is, and where improvements could be made.
It’s vital to compare portfolios to a standard benchmark to see growth more accurately. Portfolio analysis should always check how diversified a portfolio is because a rapidly growing portfolio that isn’t diversified might decline just as quickly.
Related: How to Research Stocks Before You Buy [How to Pick Stocks]
How do you analyze a portfolio?
First, gather all portfolio elements in one place (some tools can help with this).
For example, you might have a 401(K) with a target-date mutual fund, a personal brokerage account with stocks and bonds, cryptocurrency stored in a secure wallet, and multiple bank accounts holding your capital.
Once you have your portfolio in one place, you can use an analysis tool (the best ones are explained above) to check for many metrics at once to see if your portfolio is diversified, how risky it is, and changes you should consider.
How do I backtest my portfolio?
Backtesting is the process of using historical data to simulate how an investment strategy would have done in the past. For example, someone might check what returns they would have gotten if they had invested in Apple and Disney between January 2000 and January 2022.
Many investors believe looking at past stock prices is a helpful indicator for future prices. However, backtesting your entire portfolio manually can be very challenging and time-consuming.
If you’re interested in backtesting your portfolio, consider purchasing a tool to compile the desired data for you.
One of the most popular portfolio backtesting tools is Portfolio Visualizer. However, Portfolio Visualizer can be a bit too technical for some investors and is designed for experienced investors.
People new to analyzing their portfolios may want to start with more beginner-friendly tools (some are explained in earlier sections).
How do I monitor my stock portfolio and asset allocation?
How you should monitor your stock portfolio varies depending on the complexity of your portfolio.
To start, if your stocks aren’t all held in the same brokerage, consider a tool that will display your complete portfolio all in one place.
Compare the current stock prices to when you bought and see how your gains (or losses) compare to how the market has shifted overall.
For instance, your stocks may be up 5% from when you bought them, but the market might be up 8%.
You can also dive deeper and see how your stocks perform compared to similar stocks within the same industry. Consider using a stock tracking tool to make monitoring your portfolio easier.